Firms may bid for needle-free system Powderject offers

gain without pain VACCINE company Powderject Pharmaceuticals is selling some rights to its painless injection system as part of a plan to transform itself into the world's leading pure vaccine company.

Powderject, based at Oxford Science Park, was set up to develop a needle-free drug-delivery device invented by Oxford Professor Brian Bellhouse.

It moved into making the drugs and vaccinations in powder form for use in the device. Last year it became the UK's biggest vaccines company when it bought Mer- seyside-based Evans Vaccines from biotech giant Celltech.

The group put up for sale its lead drug, a powder form of the local anaesthetic lidocaine, and licences for using its technology of blasting drug particles into the skin.

UK drug delivery company SkyePharma said it was considering a bid and US groups Inhale Therapeutic and Alkermes are among other possible buyers.

Powderject will keep the technology for use with its vaccine portfolio. It is to spend £35m buying Swedish company SBL, which makes vaccines for travellers.

Paul Drayson, founder and chief executive of Powderject, said the moves were the culmination of a process that began with the Evans Vaccines takeover.

The acquisition came as Powderject reported widening losses. Pre-tax losses were £20.6m against last year's figure of £18.4m. Turnover jumped from £2.8m 12 months ago to £40m after the integration of Evans Vaccines.